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Corsi, Christian, Antonio Prencipe, and Athos Capriotti. "Linking organizational innovation, firm growth and firm size." Management Research: Journal of the Iberoamerican Academy of Management 17, no. 1 (April 8, 2019): 24–49. http://dx.doi.org/10.1108/mrjiam-06-2017-0760.
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PurposeThe purpose of this research is to study the effect of organizational innovation, in terms of the introduction of both new business practices and new methods of organizing workplaces, on firm growth, along with the moderating role of the firm size in this relationship.Design/methodology/approachA panel sample of 4,125 Spanish innovative firms taken from the Technological Innovation Panel for the period 2009 to 2014 was analyzed. Two-Step System-Generalized method of moments approach and instrumental variables approach with two-stage least squares have been used.FindingsThe findings remark the positive effect of organizational innovation on firm growth in case firms introduce both new business practices and new methods of organizing workplaces. Furthermore, the empirical evidences show that the firm size has a role, although partial, in moderating negatively the effect of introducing both new business practices and new methods of organizing workplaces on firm growth.Originality/valueThe study adds some new theoretical insights and empirical evidences into the literature related to the inertia theory in the perspective of the population ecology, incorporating it with the effect of firm size. Furthermore, the study may represent a further part of the complex literature puzzle that links organizational innovation to firm growth, and the inclusion of the moderating role of the firm size will partially provide a deeper understanding of this link.
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Corvino, Antonio, Francesco Caputo, Marco Pironti, Federica Doni, and Silvio Bianchi Martini. "The moderating effect of firm size on relational capital and firm performance." Journal of Intellectual Capital 20, no. 4 (October 11, 2019): 510–32. http://dx.doi.org/10.1108/jic-03-2019-0044.
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Purpose The purpose of this paper is to contribute to the ongoing debate regarding the relationship between relational capital (RC) and firm performance, by investigating the moderation effect of firm size and its key role in defining conditions for competitive advantage. Design/methodology/approach The paper uses the interpretative lens of the resource dependence theory, and refreshes consolidated studies rooted in RC. It identifies a set of variables to measure the influence of RC on firm performance, including the cost of goods sold, interest expenses and earnings per share. Content analysis was used to capture specific features of corporate disclosure tools using 51 items pertinent to RC. The authors used a specific disclosure index drawing on data collected from 73 listed firms in France, Germany, Italy and the UK. Data covering the period from 2011 to 2013 were analyzed using six regression models. Findings Firm size has a moderating effect on the relationship between RC and some variables linked to firm performance. Originality/value The study combines an internal and external perspective to investigate the interplay between firms and market environments, and therefore, enriches the ongoing debate concerning the relationship between RC and firm performance. It outlines possible ways through which RC can become an effective source of competitive advantage.
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Burton, M. Diane, Michael S. Dahl, and Olav Sorenson. "Do Start-ups Pay Less?" ILR Review 71, no. 5 (December 13, 2017): 1179–200. http://dx.doi.org/10.1177/0019793917747240.
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The authors analyze Danish registry data from 1991 to 2006 to determine how firm age and firm size influence wages. Unadjusted statistics suggest that smaller firms paid less than larger firms paid, and that firm age had little or no bearing on wages. After adjusting for differences in the characteristics of employees hired by these firms, however, they observe both firm age and firm size effects. Larger firms paid more than did smaller firms for observationally equivalent individuals but, contrary to conventional wisdom, younger firms paid more than older firms. The size effect, however, dominates the age effect. Thus, although the typical start-up—being both young and small—paid less than a more established employer, the largest start-ups paid a wage premium.
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LONG, TRINH QUANG, PETER JOHN MORGAN, and MINH BINH TRAN. "HETEROGENEOUS EFFECTS OF CREDIT ACCESS ON FORMAL AND INFORMAL FIRM GROWTH: EMPIRICAL EVIDENCE FROM VIETNAM." Singapore Economic Review 65, no. 05 (February 19, 2020): 1185–211. http://dx.doi.org/10.1142/s0217590819500723.
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This paper examines the causal effect of credit access on firm growth (measured by employment growth), using a unique micro-, small-, and medium-sized firm-level data collected every two years in Vietnam from 2005 to 2013. The results obtained from fixed-effects (FE) and FE with instrumental variable estimators show that firms with credit access experience a higher growth than firms without credit access. We also find that access to credit is positively associated with both formal and informal firm growth, but the results for formal firms seem to be driven by some high growth firms (and rapidly shrinking firms). The effect of credit access on firm growth is also heterogeneous by firm size and firm age in both types of firms.
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K Ghani, Erlane, Nur Afifah Mohd Azemi, and Evita Puspitasari. "THE EFFECT OF FIRM CHARACTERISTICS ON EARNINGS MANAGEMENT PRACTICES AMONG MALAYSIAN PUBLIC LISTED COMPANIES IN TECHNOLOGY INDUSTRY." Management and Accounting Review (MAR) 18, no. 1 (April 30, 2019): 41. http://dx.doi.org/10.24191/mar.v18i1.686.
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This study examines the effect of firm characteristics on earnings management practices among technology-based public listed firms in Malaysia. Specifically, this study examines the effect of firm size, firm profitability and firm leverage on earnings management practices. Using 83 technology-based firms listed in FTSE Bursa Malaysia KLCI Index for 2014 and 2015, this study shows a statistically positive relationship between firm size and earnings management practices. Such finding indicates larger firms tend to use earnings management incentives to enhance their performance. However, firm profitability and firm leverage have no significant relationship to the occurrences of earnings management practices. This study provides evidence that firm size influences the occurrences of earnings management among Malaysian public listed firms in the technology industry.
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Akinsokeji, Rogers A. "IMPACT OF BOARD STRUCTURE ON FIRM PERFORMANCE IN THE NIGERIAN MANUFACTURING SECTOR." Oradea Journal of Business and Economics 3, no. 1 (March 2018): 56–65. http://dx.doi.org/10.47535/1991ojbe035.
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In this study, the impact of board structure on firm performance is empirically examined using a large cross section of 50 manufacturing firms in Nigeria and the panel data estimation technique. Both the random and fixed effects methods are adopted to provide robust estimates from the pooled data for the firms over a ten-year period (2005-2014) and the estimations are performed using two measures of firm performance and three measures of board structure. The empirical results from the analysis show that board structure has a significant impact on performance of manufacturing firms in Nigeria. The main source of the impact is through board independence and faintly through board size. However, board composition seems to exert very little effect on firm performance for the sample in the study. Also, firm size is shown to be an essential factor in explaining the general behaviour of firm performance and the pattern of effect that board structure has on firm performance. The effect of size is observed by controlling for it in the performance estimations. The study shows that firm size tends to improve the effect of board structure on performance, apart from EPS. The optimization of board size and composition is desirable for performance especially in a setting like Nigeria with diverse firm characteristics.
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Haw, In-Mu, and Wi-Saeng Kim. "Firm Size and Dividend Announcement Effect." Journal of Accounting, Auditing & Finance 6, no. 3 (July 1991): 325–44. http://dx.doi.org/10.1177/0148558x9100600303.
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Long, Richard J. "The Effect of Unionization on Employment Growth of Canadian Companies." ILR Review 46, no. 4 (July 1993): 691–703. http://dx.doi.org/10.1177/001979399304600407.
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This longitudinal analysis of employment in 510 Canadian firms over the period 1980 to 1985 provides evidence that union firms in both the manufacturing and nonmanufacturing sectors experienced substantially slower employment growth than comparable nonunion firms. Controlling for industry sector, firm size, and firm age, the author finds that within the manufacturing sector, union firms grew 3.7% more slowly per year than nonunion firms, and within the nonmanufacturing sector, union firms grew 3.9% more slowly than nonunion firms. Small firms in both sectors, however, appear to have escaped any negative union effect on employment growth. Of the control variables, firm age appears to be much more important than firm size in explaining employment growth.
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Angsoyiri, Dramani. "The Effect of Ownership Structure and Audit Quality on Firm Performance." International Journal of Business, Technology and Organizational Behavior (IJBTOB) 1, no. 2 (April 6, 2021): 65–78. http://dx.doi.org/10.52218/ijbtob.v1i2.10.
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The study examined the effect of ownership structure and audit quality on firm performance of listed companies in Ghana. The research employed a quantitative research approach; secondary data was extracted from various annual reports and financial statements of the selected companies. The target population was all 42 listed companies on the Ghana Stock Exchange. The sample size was 20 companies selected from all industries. The study period was 2013-2018 resulted in 160 firm-yearly empirical observations. The study used return on asset (ROA) and return on equity (ROE) as the performance measure. Ownership structure was measured using managerial ownership and institutional ownership, audit quality was also measured with the auditor’s reputation, audit committee size and audit committee independence. The control variables used were board size and firm size. The researcher found a weak positive correlation between institutional and managerial ownership and firm performance. Moreover, there was a positive effect of audit quality on firm performance. It implies that the engagement of the services of the Big 4 audit firms has an incremental effect on firm performance. Audit committee size posited a positive effect on firm performance whereas audit committee independence was seen to harm firm performance. Similarly, board independence showed a positive effect on ROE and a negative effect on ROA. Board size, however, indicated a positive effect on firm performance. The researcher recommended the pressing need of diversifying shareholdings in firms as a sweetener to attract more skills and expertise among shareholders that can be tapped to enhance the performance of firms. However, managers should be protected from unnecessary shareholding meddling.
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Yadav, Inder Sekhar, Debasis Pahi, and Phanindra Goyari. "The size and growth of firms: new evidence on law of proportionate effect from Asia." Journal of Asia Business Studies 14, no. 1 (January 7, 2020): 91–108. http://dx.doi.org/10.1108/jabs-12-2018-0348.
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Purpose This paper aims to investigate the relationship between firm size and growth under the framework of Law of Proportionate Effect (LPE) for Asian firms. Design/methodology/approach An unbalanced panel data for about 12,001 unique non-financial listed and active firms from 1995 to 2016 for 12 industrial and emerging Asian economies was examined. Total assets and net sales were used as size variables. Firm-specific variables such as return on equity, leverage and liquidity ratio were used along with macroeconomic variables such as GDP growth and two financial development indicators. The fixed effects and random effects approach were used to estimate the dynamic growth model after taking into account econometric issues such as correlation between the cross-country-specific error component and the regressors and heteroscedasticity. Findings The estimated coefficient of firm size was found to be always significant and negative rejecting the Gibrat’s law for Asian firms confirming that the small-sized firms are growing faster than larger-sized firms. Also, the persistence of growth coefficient suggested that a positive persistence of firm growth does not exist for the selected Asian firms. Gibrat’s LPE was also rejected across small, medium- and large-sized companies. For the aggregate sample, the coefficient of leverage was found to be negative and significant, whereas liquidity ratio, GDP growth, banking sector and stock market variables are found to have positive and significant relationship with growth of firms. For individual economies, a mix of positive and negative (significant and insignificant) estimated coefficient was observed. Practical implications At macro-level, the examination of firm growth is likely to have significant policy implications for the regulators and various government agencies as firm growth may increase economic activity in general and employment opportunities in particular. The policymakers can control economic and employment activity by designing specific firm growth policies. At micro-level, the study will have significant implications for managerial decision-making. Originality/value To the best of the authors’ knowledge, this is one of the first studies to test the validity of Gibrat’s LPE for large Asian economies and firms using recent data under a dynamic growth framework using firm-specific and macroeconomic variables. Also, persistence of growth of firms under LPE (that growth does not persist from one period to the next) is uniquely examined for Asian firms.
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Nie, Yu, John Talburt, Serhan Dagtas, and Taiwen Feng. "The influence of chief data officer presence on firm performance: does firm size matter?" Industrial Management & Data Systems 119, no. 3 (April 8, 2019): 495–520. http://dx.doi.org/10.1108/imds-03-2018-0101.
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PurposeThe purpose of this paper is to investigate the relationship between the chief data officer’s (CDO) presence and firm performance, and the moderating effect of firm size.Design/methodology/approachThe performance data for 64 treatment firms with CDOs and 64 control firms without CDOs is collected from Compustat database. The Wilcoxon signed-rank test is used to analyze the performance differences between treatment firms and control firms. Hierarchical regression method is used to test the moderating effect of firm size.FindingsThe results indicate that the profit ratios of treatment firms are significantly improved after the appointment of CDOs, and the profit ratios of treatment firms are significantly higher than that of the control firms. For the cost ratios, the findings provide some empirical evidence revealing two of the cost ratios are lower and only one ratio is higher for the treatment firms after CDOs’ appointment. Firm size moderates the relationship between the CDO’s presence and firm performance indicator, ROS, in the same direction. Firm size has no moderating effect on relationships between CDO’s presence and other performance indicators.Practical implicationsThe findings provide practical insights that will help managers to realize the importance of CDOs and their work. CDOs would bring some cost to the firms, but they would bring more profit to firms. In addition, if for large firms, the CDO’s presence would bring more ROS.Originality/valueThe study explores the relationship between the CDO’s presence and firm performance. It is the first attempt to explore the CDO’s presence and the cost performance in the specific time period, and the study is also the first attempt to analyze the moderating effect of the firm size on the relationship between the CDO’s presence and firm performance.
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Diyanto, Volta, and Riska Natariasari. "The Analysis of Good Corporate Governance, Corporate Social Responsibility and, Firm Size Toward Firm Value." Indonesian Journal of Economics, Social, and Humanities 1, no. 2 (October 4, 2019): 97–101. http://dx.doi.org/10.31258/ijesh.1.2.97-101.
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This research aims to analyze the effect of good corporate governance, corporate social responsibility, and the firm size towards the firm value. The population was banking firms listed in Indonesia Stock Exchange period 2015-2018. Samples used were 28 firms. The analysis method used multiple linear regression. The research results show that managerial ownership does not have effect towards the firm value. Institutional ownership and firm size have positive effect towards the firm value. Corporate social responsibility has negative effect towards the company value.
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Angsoyiri, Dramani. "The Effect of Ownership Structure and Audit Quality on Firm Performance." International Journal of Multidisciplinary: Applied Business and Education Research 2, no. 2 (February 11, 2021): 77–87. http://dx.doi.org/10.11594/ijmaber.02.02.01.
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The study examined the effect of ownership structure and audit quality on firm performance of listed companies in Ghana. The research employed a quantitative research approach; secondary data was extracted from various annual reports and financial statements of the selected companies. The target population was all 42 listed companies on the Ghana Stock Exchange. The sample size was 20 companies selected from all industries. The study period was 2013-2018 resulted in 160 firm-yearly empirical observations. The study used return on asset (ROA) and return on equity (ROE) as the performance measure. Ownership structure was measured using managerial ownership and institutional ownership, audit quality was also measured with the auditor’s reputation, audit committee size and audit committee independence. The control variables used were board size and firm size. The researcher found a weak positive correlation between institutional and managerial ownership and firm performance. Moreover, there was a positive effect of audit quality on firm performance. It implies that the engagement of the services of the Big 4 audit firms has an incremental effect on firm performance. Audit committee size posited a positive effect on firm performance whereas audit committee independence was seen to harm firm performance. Similarly, board independence showed a positive effect on ROE and a negative effect on ROA. Board size, however, indicated a positive effect on firm performance. The researcher recommended the pressing need of diversifying sharehold-ings in firms as a sweetener to attract more skills and expertise among shareholders that can be tapped to enhance the performance of firms. However, managers should be protected from unnecessary shareholding meddling.
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Zheng, Chen, and Henry Tsai. "The moderating effect of board size on the relationship between diversification and tourism firm performance." Tourism Economics 25, no. 7 (January 14, 2019): 1084–104. http://dx.doi.org/10.1177/1354816618823427.
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This study examines the effects of diversification strategy and board size on firm performance as well as the moderating effect of board size on the relationship between diversification strategy and firm performance in the Chinese tourism industry from 2008 to 2015. The results show that related diversification positively influenced Chinese tourism firm performance, and unrelated diversification negatively influenced it. Board size was found to negatively moderate the relationship between related diversification and firm performance and to positively moderate the relationship between unrelated diversification and firm performance. In addition, the results imply that small boards are beneficial to Chinese tourism firms when both related and unrelated diversification strategies are implemented.
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Achyarsyah, Padri, and Molina Molina. "Audit Firm Tenure, Audit Firm Size and Audit Quality." Global Journal of Business and Social Science Review Vol. 2(4) 2014 2, no. 4 (October 12, 2014): 69–76. http://dx.doi.org/10.35609/gjbssr.2014.2.4(8).
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Objective - The objective of this paper is to examine the effect of audit firm tenure and audit firm size on audit quality. This study applies explanatory research in which questionnaire and interviews serve as the primary data. The population of this study is public accounting firms which are registered in the Indonesian capital market. Methodology/Technique - The study presents a survey using professional auditors. The multiple regression methode is used to conduct an hypothesis test of the effect of audit firm tenure and audit firm size on audit quality. Findings - The result of study depicted that audit firm tenure has no significant influence on the audit quality, while the audit firm size has significant influence on the audit quality. Audit quality deteriorate, when the length of the audit firm client engagement is longer. No particular concern to audit firm size since the big audit firm size has extensive training for their staffs and sufficient system in place. Novelty - The study contributes to auditing literature in the areas of audit quality. The length of the audit firm client relationship and audit firm size always rise the contradiction to the audit quality. The audit firm tenure and audit firm size support previous study, additional insight are gained toward in the elections of the audit firm that serves professional services in capital markets. Type of Paper - Empirical Keywords: Audit Firm Tenure; Audit Firm Size; Audit Quality; Auditor
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Pradipta, Arya, and Yulius Kurnia Susanto. "Firm Value, Firm Size and Income Smoothing." Journal of Finance and Banking Review Vol. 4 (1) Jan-Mar 2019 4, no. 1 (March 16, 2019): 01–07. http://dx.doi.org/10.35609/jfbr.2019.4.1(1).
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Objective - Income smoothing is a form of earnings manipulation to show that the company's performance is good. Income smoothing can be detrimental to investors, because investors do not know the real financial position and fluctuations of the company. Management of the company engage in income smoothing because investors tend to focus only on the amount of profit reported without regard to the process of generating profits. The purpose of this research is to obtain empirical evidence about the effect of firm value and size on income smoothing. Methodology/Technique - The sample of the research includes manufacturing companies listed on the Indonesian Stock Exchange from 2014-2016. The samples were determined using a purposive sampling method and there are 51 companies that meet the criteria used. This research uses a logistic regression method for data analysis. Findings - The results of the research show that the effect of firm value on income smoothing is positive and significant. Meanwhile, the effect of firm size on income smoothing is negative and significant. Companies that create value in the eyes of investors will try to retain their investors by engaging in income smoothing. Income smoothing will convince investors to invest in the company. Meanwhile, large companies that are convinced that investors will continue to invest do not typically engage in income smoothing. Novelty – This study proves that, in the context of agency theory, the principal's desires are not often aligned with the wishes of management which can give rise to agency costs, one of which occurs as a result of income smoothing. Further, firm size can minimize opportunist income smoothing actions. Type of Paper - Empirical. Keywords: Income Smoothing; Firm Value; Firm Size; Agency Theory. JEL Classification: G32, M41, M49. DOI: https://doi.org/10.35609/jfbr.2019.4.1(1)
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Yahaya, Onipe Adabenege, and Bilyaminu Tijjani. "SIZE, AGE AND LEVERAGE OF NIGERIA QUOTED OIL AND GAS CORPORATIONS." Advanced International Journal of Banking, Accounting and Finance 3, no. 6 (March 16, 2021): 51–60. http://dx.doi.org/10.35631/aijbaf.36005.
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Firm size and age influence firm-level leverage. The extent of such influence on the oil and gas industry is not known in Nigeria. There are very few empirical studies that interrogate the effects of firm size and listing age on leverage in Nigeria. This study examines the impacts of firm size and listing age on firm-level financial leverage of listed oil and gas companies in Nigeria. It was non-experimental research and correlational in nature. Data were extracted from annuals and accounts of 8 firms over a period of 13 years (2007-2019) and subjected to descriptive statistics (number of observations, mean, standard deviations, mean, minimum and maximum means) and inferential statistics (multiple regression analysis). The findings show that firm size has a negative and significant impact on firm-level financial leverage. Firm age has a positive and significant effect on firm-level leverage. In this paper, we contribute to the literature by examining the presence and direction of firm size and listing age to financial leverage user data from listed oil and gas firms in Nigeria. Our study is the first to address the adverse implications of Modeling with firm size and listing age on firm-level financial leverage.
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Mardiyati, Umi, Sekar Ghita Nur Utami, and Gatot Nazir Ahmad. "THE EFFECT OF PROFITABILITY, LIQUIDITY, LEVERAGE AND FIRM SIZE TOWARD BOND RATING ON NON FINANCIAL INSTITUTION LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2010-2014." JRMSI - Jurnal Riset Manajemen Sains Indonesia 6, no. 2 (September 30, 2015): 579. http://dx.doi.org/10.21009/jrmsi.006.2.05.
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The Purpose of this research is to know the effects of profitability, liquidity, leverage, and firm size toward bond rating. This research used logistic regression as a method of data analysis. The samples of this research are non financial firms listed in Indonesian Stock Exchanged and rated by PEFINDO’s rating agency period 2010-2014. In this research, bond rating as dependent variabel categorized into investment grade (1) and non investment grade (0), while the independent variabels consisted of profitability proxied by ROA, liquidity proxied by CR, leverage proxied by DER, and firm size proxied by total asset. The result research as parsial show that profitability and leverage has positive and significant effect on bond rating, while liquidity and firm size has positive but not significant effect on bond rating. While as simultan profitability, liquidity, leverage and firm size has positive and significant effect on bond rating.
Key word: profitability, liquidity, leverage, firm size, bond rating.
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Lisi, Gaetano. "Does Firm Size Matter? The Impact of Homeownership on Business Start-up in Italy." Applied Economics Quarterly: Volume 65, Issue 3 65, no. 3 (July 1, 2019): 237–46. http://dx.doi.org/10.3790/aeq.65.3.237.
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Abstract This paper is the first attempt to empirically test the relationship between homeownership and business start-up by putting emphasis on the characteristics of both homeowners and firms. It relies on the fact that the firm size is relevant when considering the relationship between homeownership (outright or with mortgage) and new enterprises (small-sized or medium- and large-sized). A cross-section analysis of Italy supports our hypothesis that firm size matters in estimating the actual effect of homeownership on business start-up: Homeownership has a negative effect on large-sized business start-up; in contrast, outright homeownership has a positive effect on small business start-up, whereas homeownership with mortgage payments has a negative effect only on small business start-up. Theoretical explanations are also provided. JEL Classifications: C31, L25, L26, M13, R21, R31 firm size, business start-up, homeownership
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Park, Cheol, Jongkun Jun, Thaemin Lee, and Heejung Lee. "Customer orientation or employee orientation: which matters more? The moderating role of firm size." Journal of Business & Industrial Marketing 33, no. 7 (August 6, 2018): 1001–11. http://dx.doi.org/10.1108/jbim-05-2017-0119.
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Purpose This study aims to examine several antecedents of employee satisfaction (ES) and turnover intention (TI), including customer orientation (CO) and employee orientation (EO). The purposes are to investigate the effect of EO and CO and their interaction on employee performance, and to verify the moderating effect of firm size. Design/methodology/approach A mixed model with firm size as a potential moderator was constructed through a hierarchical linear modeling approach with data collected from 1,006 employees at 127 firms. Findings The results indicate that customer and EO and their interaction affected ES, CO and its interaction with EO significantly affected TI and the effects differed according to firm size. These results suggest that the influence of customer and EO depends on firm size. Originality/value This study contributes to verifying the effect of EO and CO and the interaction effects on employee performance, an area that has remained unexamined in the literature. It also investigates the moderating effect of firm size on EO and CO, which affects employee performance. It is suggested that companies determine whether EO or CO matters more according to the size of company.
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Mayer, Thierry, Marc J. Melitz, and Gianmarco I. P. Ottaviano. "Market Size, Competition, and the Product Mix of Exporters." American Economic Review 104, no. 2 (February 1, 2014): 495–536. http://dx.doi.org/10.1257/aer.104.2.495.
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We build a theoretical model of multi-product firms that highlights how competition across market destinations affects both a firm’s exported product range and product mix. We show how tougher competition in an export market induces a firm to skew its export sales toward its best performing products. We find very strong confirmation of this competitive effect for French exporters across export market destinations. Theoretically, this within-firm change in product mix driven by the trading environment has important repercussions on firm productivity. A calibrated fit to our theoretical model reveals that these productivity effects are potentially quite large. (JEL D21, D24, F13, F14, F41, L11)
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Olaniyi, Clement Olalekan, Olayemi O. Simon-Oke, Olufemi Bodunde Obembe, and Segun Thompson Bolarinwa. "Re-examining Firm Size-profitability Nexus: Empirical Evidence from Non-financial Listed Firms in Nigeria." Global Business Review 18, no. 3 (April 4, 2017): 543–58. http://dx.doi.org/10.1177/0972150917692064.
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The bulk of extant studies on the relationship between firm size and profitability focus on the effect of former on the latter, neglecting the possibility of feedback effect. This research work re-examines the direction of causality between firm size and profitability for 63 listed non-financial Nigerian firms for the period 1998–2010, using an innovative econometric methodology of a dynamic panel generalized method of moments to resolve the problem of endogeneity inherent in the relationship. The results establish a bidirectional relationship between firm size and profitability of firms in Nigeria. While firm size positively Granger-causes profitability, profitability, on the other hand, negatively Granger-causes firm size. This study therefore rebuts the popular assumption that causation only runs from firm size to profitability and not vice versa. The emerging conclusion drawn from this study is that profitability might be a vital tool to make firms grow faster if well managed as the economies of scale could also be induced.
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RO, BYUNG T. "Earnings news and the firm size effect." Contemporary Accounting Research 6, no. 1 (September 1989): 177–95. http://dx.doi.org/10.1111/j.1911-3846.1989.tb00752.x.
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Salim, M. Noor, and Rina Susilowati. "THE EFFECT OF INTERNAL FACTORS ON CAPITAL STRUCTURE AND ITS IMPACT ON FIRM VALUE: EMPIRICAL EVIDENCE FROM THE FOOD AND BAVERAGES INDUSTRY LISTED ON INDONESIAN STOCK EXCHANGE 2013-2017." International Journal of Engineering Technologies and Management Research 6, no. 7 (March 31, 2020): 173–91. http://dx.doi.org/10.29121/ijetmr.v6.i7.2019.434.
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This research aims to analyze the effects of profitability (ROA), liquidity (CR), assets growth, and firm size towards capital structure (DER) and the impact on firm value (PBV).This research uses secondary data from yearly financial statement of food and baverages companies listed in Indonesian Stock Exchange for period 2013-2017. The research design uses descriptive quantitative research and causality. Sampling method uses purposive sampling method, with some predetermined criteria, the number of sample is 17 manufacturing companies. The analysis technique used is panel data regression. The research results shows that the profitability (ROA) and firm size partially have negative effect and not significant on capital structure (DER). The liquidity (CR) and assets growth partially have negative effect and significantly on capital structure (DER). Then the capital structure (DER) partially have positive effect but not significantly influences the firm value (PBV). The profitability (ROA) partially have positive effect and significant on firm value (PBV). The liquidity (CR) and assets growth partially have negative and significant effect on firm value (PBV), and firm size partially have negative and not significant effect on firm value (PBV). Simultaneously profitability (ROA), liquidity (CR), assets growth and firm size effect on capital structure (DER). On the other side, simultaneously profitability (ROA), liquidity (CR), assets growth and firm size have effect on firm value (PBV).
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Andries, Petra, and Ute Stephan. "Environmental Innovation and Firm Performance: How Firm Size and Motives Matter." Sustainability 11, no. 13 (June 29, 2019): 3585. http://dx.doi.org/10.3390/su11133585.
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There is limited understanding of the precise circumstances under which environmental actions—such as environmental innovation—contribute to firm performance. Building on the resource-based view and on stakeholder theory, this study argues that the general positive effect of environmental innovation on financial performance varies significantly with firm size and the motives underlying a firm’s engagement in environmental innovation. Integrating survey data and lagged annual account data on 1761 Flemish companies, we find that larger firms benefit financially from environmental innovation driven by regulation or industry codes of conduct, while smaller firms benefit from environmental innovation introduced in response to customer demand. While it is increasingly accepted that environmental innovation relates positively with firm performance, the current study highlights important boundary conditions of this relationship.
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Lee, DonHee. "Implementation of Collaborative Activities for Sustainable Supply Chain Innovation: An Analysis of the Firm Size Effect." Sustainability 11, no. 11 (May 28, 2019): 3026. http://dx.doi.org/10.3390/su11113026.
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This study examines the effects of collaborative and implementation activities on environmental performance for sustainable supply chain management. Specifically, the proposed research investigates the moderating effect of firm size on the effect relationships. The structural equation modeling with AMOS 23.0 was employed to test hypotheses. The results confirm the positive effects of collaborative activities on environmental performance and the positive relationship between collaborative activities and green certification programs in both small and medium enterprises (SMEs) and large-sized firms. Contrary to general belief, firm size did not moderate the relationship between autonomous collaborative activities and green activities. However, other relationships were supported in the research model, thus firm size partially moderates the relationships of collaborative activities with implementation activities and environmental performance. The study demonstrates that implementation activities play a key role in improving collaborative activities with suppliers and vendors for sustainable supply chain innovation. Additionally, it contributes to the practice of sustainable supply chain innovation as well as to efficiency through collaborative activities in the supply chain process.
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Lakatos, Zsolt. "Do larger boards improve shareholder value creation? – Effects of the board size on business performance in Eastern Central Europe." Society and Economy 42, no. 3 (September 2020): 245–79. http://dx.doi.org/10.1556/204.2020.00007.
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AbstractThe aim of this study is to analyse the impact of board size on a firms' operational and market performance at the largest East Central European listed non-financial, non-public utility firms. The literature debates the effects of the size of the board. While the resource dependency theory supports a positive effect, the agency theory supports a negative impact on firm value. This question is rarely investigated in two-tiered corporate governance models. This paper estimates the effects of management board and supervisory board size, between 2007 and 2016. The results indicate that the effect of management board size depends heavily on the size of the observed company. In both fixed effects and GMM-type dynamic panel regression models, using Tobin's Q, market-to-book ratio, total shareholder value and ROA as firm performance measures, increase in management board size has a significant positive impact on firm performance; however, in the case of larger firms, the effect is significantly negative. Moreover, the increase in the ratio of outside directors has a positive impact on the firm's performance in all dynamic panel regression models and this effect is even more significant in Tobin's Q and market-to-book ratio models. This can indicate the effective monitoring role of the supervisory board.
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Rahim, Imad, and Attaullah Shah. "Corporate Financing and Firm Efficiency: A Data Envelopment Analysis Approach." Pakistan Development Review 58, no. 1 (March 1, 2019): 1–25. http://dx.doi.org/10.30541/v58i1pp.1-25.
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This study investigates the endogenous determination of firm efficiency and leverage while testing the competing hypotheses of agency cost, efficiency-risk and franchise-value, in a sample of 136 non-financial firms listed on the Pakistan Stock Exchange (PSX), over the period 2002 to 2012. Data Envelopment Analysis (DEA) method is employed to measure firm efficiency as proxy for firm performance. The endogenous nature of firm efficiency and leverage allowed using two-stage least square (2SLS) technique. The findings of the efficiency equation suggest that leverage has a significant positive effect on firm efficiency. Additionally, firm risk, growth rate, size, board size and board composition positively affect firm efficiency. On the other hand, the results of the leverage equation suggest that firm efficiency has a significant negative effect on leverage. Firm size and CEO duality have positive effects on leverage while firm age, board composition, institutional ownership, managerial ownership and asset tangibility have negative effects on leverage. Generally, the results support agency cost and franchise-value hypotheses that higher leverage improves firm efficiency while higher firm efficiency results in reduced leverage. Keywords: Leverage, Firm Efficiency, Capital Structure, Firm Performance, Data Envelopment Analysis
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Brusa, Jorge, Pu Liu, and Craig Schulman. "The Weekend Effect, 'Reverse' Weekend Effect, and Firm Size." Journal of Business Finance Accounting 27, no. 5&6 (June 2000): 555–74. http://dx.doi.org/10.1111/1468-5957.00325.
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Wahba, Hayam, and Khaled Kadry Elsayed. "Firm complexity and corporate board size: testing the moderating effect of board leadership structure." Corporate Ownership and Control 7, no. 4 (2010): 114–26. http://dx.doi.org/10.22495/cocv7i4p8.
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Most prior studies have argued that the relationship between firm complexity and board size is a monotonic one: complex firm tend to have a large board size. Contrary to previous work, it is hypothesized in this study that this relationship is more likely to be moderated by board leadership structure. Using a sample of 92 Egyptian listed firms over the period from 2000 to 2004, we found that firm complexity exerted a positive and significant coefficient on board size when the firm adopts a leadership structure that separates the roles of CEO and chairman. However, the incremental effect of firm complexity on board size was negative and significant for firms that combine the roles of CEO and chairman (i.e., CEO duality). This study provides supportive evidence for the argument that firms are more likely to manipulate their boards’ characteristics to attain organizational adaptation at the minimum total cost. Thus, studying of one main characteristic of the board of directors without taking into account the expected effect of other characteristics may lead to inconclusive evidence. This study offers insights to practising managers and policy makers. If practising managers want to maximize the value of their firms, they need to broaden their insight to understand that board characteristics are multidimensional, contingent and dynamic in their nature and differ not only across firms and industry, but also across countries. Moreover, before developing and launching new and additional corporate governance reforms, policy makers need to realize that differences in corporate governance systems cannot be fully explained outside their institutional environments.
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Roni, et al. "Sustainable manufacturing drivers and firm performance: Moderating effect of firm size." International Journal of ADVANCED AND APPLIED SCIENCES 4, no. 12 (December 2017): 243–49. http://dx.doi.org/10.21833/ijaas.2017.012.042.
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López-López, Vicente, Susana Iglesias-Antelo, and Esteban Fernández. "Is Sustainable Performance Explained by Firm Effect in Small Business?" Sustainability 12, no. 23 (December 1, 2020): 10028. http://dx.doi.org/10.3390/su122310028.
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To what extent a firm’s resources (firm effect) and the structure of the sector (industry effect) are sources of a firm’s competitiveness has been debated for years in strategic management. Most of the empirical studies carried out have focused on large firms and have used static performance measures, and in them the firm effect generally outweighs the industry effect. This research contributes to this debate in trying to verify whether the competitive advantage that relies on the firm’s resources is sustainable, especially in small firms. We used a sample of almost 15,000 Spanish firms to test the impact that the firm and the industry effects have on sustainable performance, for both small and large firms, applying hierarchical linear modelling with a variable measured through time-varying parameters. Our results confirm the absolute importance of the firm effect on sustainable organizational performance, regardless the firm size, and show that, even though the industry effect has little weight in explaining sustainability, it is significantly higher in the case of small firms. This means that managers must concentrate efforts on providing their firm with the necessary resources to achieve a competitive advantage while choosing a good sector to position itself.
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Aprilia, Erika Astriani. "EFFECT OF GOOD CORPORATE GOVERNANCE AND SUSTAINABILITY REPORT DISCLOSURE STRUCTURE ON COMPANY VALUE AND ECONOMIC ADDED VALUE AS INTERVENING VARIABLE." EAJ (ECONOMICS AND ACCOUNTING JOURNAL) 1, no. 3 (December 10, 2018): 225. http://dx.doi.org/10.32493/eaj.v1i3.y2018.p225-233.
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The purpose of this study to test the effect of Good Corporate Governance Structure, Sustainability Reporting Disclosure, and Firm Value on the Economic Value Added as an intervening variable. This study uses secondary data from the period 2010-2015 to firms listed at Indonesia Exchange. The sampling technique used purposive sampling. Tools to process the data using SPSS 23.The results showed Board of Commissioners Size, Independent Commissioner, Institutional Ownership have a significant impact on Firm Value while Board of Directors Size, Audit Committee, Managerial Ownership does not have effect on Firm Value. Board of Directors Size and Board of Commissioners Size have an effect on Economic Value Added and Firm Value, but Economic Value Added not an intervening variable between Board of Directors Size and Board of Commissioners Size. , Independent Commissioner has not effect on Economic Value Added, but Economic value added is an intervening variable between Independent Commissioner and Firm Value. Audit Committee does not effect on Economic Value Added and Firm Value, but Economic value added is an intervening variable between Audit Committee and Firm Value. Managerial ownership does not have effect on Economic Value Added and Firm Value, but Economic value added is an intervening variable between Managerial ownership and Firm Value. Institusional Ownership does not have effect on Economic Value Added and Economic Value Added is not intervening variable between Institusional Ownership and Firm Value. Sustainability Report Disclosure has an effect on Economic Value Added and Firm Value.
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Dar, Atul A., and Sal AmirKhalkhali. "On The Growth Process Of Firms: Does Size Matter?" International Business & Economics Research Journal (IBER) 14, no. 3 (April 30, 2015): 477. http://dx.doi.org/10.19030/iber.v14i3.9217.
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The purpose of this empirical study is to investigate whether the growth process of firms is best explained essentially by a random process as envisaged by Gibrats law, or by identifiable systematic influences such as growth persistence and firm size. A dynamic random coefficients model is applied to data on 260 Canadian firms classified into four groups according to firm size. Gibrats law of proportionate effect is not supported by the empirical results. Specifically, the findings indicate that smaller firms grow faster than larger ones in all cases. However, they also show that the effect of the disadvantage of size on growth is somewhat different for each group.
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Graf, Andrea, and Markus Stiglbauer. "Board size and firm operating performance: Evidence from Germany." Corporate Board role duties and composition 5, no. 1 (2009): 37–47. http://dx.doi.org/10.22495/cbv5i1art4.
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Determining the optimum size of corporate boards is an important task for companies. Agency theory suggests that either too large or too small boards cause negative effects on firm operating performance. For a given sample of 113 listed firms in the German Prime market, we tested the effect of board size on return on assets and return on equity. Our findings provide evidence that there is a significantly negative Management Board size effect both on return on assets and return on equity. The results are consistent with the assumption of dysfunctional norms of behaviour within the German two-tier board structure.
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Amorim Varum, Celeste, and Vera Catarina Rocha. "The effect of crises on firm exit and the moderating effect of firm size." Economics Letters 114, no. 1 (January 2012): 94–97. http://dx.doi.org/10.1016/j.econlet.2011.09.015.
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Abidin Sahabuddin, Zainal, and Bram Hadianto. "The effect of board governance and debt policy on value of non-financial firms." Investment Management and Financial Innovations 16, no. 2 (April 17, 2019): 37–46. http://dx.doi.org/10.21511/imfi.16(2).2019.04.
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Supervisory board plays an essential role to implement good governance in firm. If this governance is implemented well, the increase in firm value will occur. Related to this statement, the main question that appears is about the number and independence rate of supervisory board members needed to enhance firm value. Besides supervisory board, debt policy holds an important role for firm because of bankruptcy issue. Firm with good governance tries to avoid this issue by decreasing the amount of its debt to create high value.The aim of this study is to test and analyze the effect of board governance, consisting of size and independence of supervisory board, and debt policy on value of non-financial firms forming the Kompas 100 Index on Indonesia Stock Exchange. To be able to generalize results on all non-financial firms forming this index, stratified random sampling method is used to take firms as the sample from the population. Method of data analysis used is fixed effect regression model.This study infers that the number of supervisory board members has no effect on firm value, whereas board independence and debt policy have the effect on firm value: firm with high portion of supervisory board independence and the amount of debt significantly tends to have low value.
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Rosser, Bruce A., and Jean M. Canil. "Is there a firm-size effect in CEO stock option grants?" Corporate Ownership and Control 6, no. 1 (2008): 115–26. http://dx.doi.org/10.22495/cocv6i1p12.
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Schaefer (1998) and Baker and Hall (2004) posit a firm size effect for regular executive compensation but not specifically for executive stock option grants. They propose an inverse relation between pay-performance sensitivity and firm size along with a positive relation between the marginal productivity of executive effort and firm size. The product of pay-performance sensitivity and executive productivity is „incentive strength‟. They find a weakly positive association between incentive strength and firm size. We substitute Hall and Murphy‟s (2002) pay-performance sensitivity metric to detect a firm size effect in CEO stock option grants. After adjusting for small-firm risk aversion and private diversification „clienteles‟, we document evidence of a residual small-firm effect impacting on incentive strength principally through grant size. Given lower small-firm deltas, grant size appears to have been increased by compensation committees to ensure small-firm CEOs are not under-compensated relative to their large-firm counterparts. We also find that firm complexity influences pay-performance sensitivity as well, but not labor productivity (proxying for CEO productivity). No evidence is found that firm smallness and complexity impact on labor productivity. However, we empirically confirm a negative relation between pay-performance sensitivity and firm smallness and, by implication, firm complexity.
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Santosa, Perdana Wahyu. "The Effect of Financial Performance and Innovation on Leverage: Evidence from Indonesian Food and Beverage Sector." Organizations and Markets in Emerging Economies 11, no. 22 (December 30, 2020): 367–88. http://dx.doi.org/10.15388/omee.2020.11.38.
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This article aims to investigate the determinants of firm’s capital structure (debt ratio) such as asset structure, profitability, agency cost, innovation and technology, and firm size as a moderating variable. This study used quarterly data from the financial statements of food and beverage firms at the Indonesia Stock Exchange with a purposive sampling method that met the research criteria with panel data analysis. The findings show that firm size and asset structure affect leverage positively; however, profitability and innovation and technology negatively affect the debt ratio, while agency cost does not affect leverage. All findings are in line with the hypotheses except agency cost. The firm size as a moderating variable shows strengthening of the interaction between agency cost and innovation with leverage. However, interacting with firm size weakens the effect of the relationship between assets structure and profitability with the debt ratio. Managerial implications of the target of debt ratio that creates the value of the firm need to be flexible and controlled by the interaction of the firm size with firm characteristics and innovation to achieve an optimal firm value of F & B sector.
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Li, Frank, Taylor Morris, and Brian Young. "The Effect of Corporate Visibility on Corporate Social Responsibility." Sustainability 11, no. 13 (July 5, 2019): 3698. http://dx.doi.org/10.3390/su11133698.
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Outside of direct ownership, the general public may feel it is an implicit stakeholder of a firm. As the public becomes more vested in a firm’s actions, the firm may be more likely to engage in Corporate Social Responsibility (CSR) activities. We proxy for the public’s stake in a firm with public visibility. Based on 3400 unique newspaper publications from 1994–2008, we measure visibility for the S&P 500 firms with the frequency of print articles per year concerning the firm. We find that visibility has a signficant, positive relationship with the CSR rating. Evidence also suggests this relationship may be causal and working in one direction, from visibility to CSR. While the existing literature provides other factors that influence CSR, visibility proves to have the most significant impact when tested alongside those other factors. Visibility also has a mediating effect on the relationship between CSR rating and firm size. CSR rating and firm size relate negatively for the lowest visibility firms and positively for the highest. This paper provides strong evidence that visibility is an important factor to consider for studies on corporate social performance.
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Shan, Lee Hui, Yow Taw Onn ., Lee Sin Yee ., and Sim Kee Chuan . "Working Capital Management Effect on the Performance of Wholesale and Property Industry in Malaysia." Journal of Economics and Behavioral Studies 7, no. 5(J) (October 30, 2015): 19–28. http://dx.doi.org/10.22610/jebs.v7i5(j).602.
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This paper provides the influence of working capital management (WCM) on the performance of public listed wholesale & retail industry and property industry in Malaysia from 2002 to 2011. Regression model is employed by using two measures of companies’ performance namely Return on Assets, ROA (proxy to gauge the firm’s profitability) and Tobin’s Q, TQ (proxy to gauge the firm’s market value) as the dependant variables. WCM components include Current Liabilities to Total Assets Ratio and Current Assets to Total Assets Ratio with three control variables which include of Firm Size (SIZE), Sales Growth (SLGR) and Financial Leverage (LEV) as the independent variables. The results to a very large extent indicate that CATAR and SIZE have significant positive effect on the performance of firm. It suggests that wholesale & retail industry and property industry in Malaysia should pursue unadventurous investment strategy by implementing high altitude of short term investment in order to make profit and create value for their shareholders. It also reveals that the larger the firms are, the more profitable they are; recommending the firms shall expand their business to achieve higher profit and accomplish shareholder wealth maximisation.
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Fen, Shie, and Ernie Riswandari. "EFFECT OF EXECUTIVE COMPENSATION, REPRESENTATIVES OF FEMALE CFO, INSTITUTIONAL OWNERSHIP AND COMPANY SIZES ON TAX AGRESSIVITY MEASURES." EAJ (ECONOMICS AND ACCOUNTING JOURNAL) 2, no. 2 (August 12, 2019): 104. http://dx.doi.org/10.32493/eaj.v2i2.y2019.p104-123.
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Tax revenue is the main source of Indonesia’s revenue. On the other side, tax payer consider tax as an expense that should be minimized because it can reduce economic ability of companies This is the reason why companies want to do same aggressive tax planning.The purpose of this research is to analyse the effect to executive compensation, CFOs female representation, institutional ownership, and firm size on tax aggressiveness. This research used 47 sample of manufacturing firms listed in Indonesian Stock Exchange for period on 2014-2016 that acquired by purposive sampling method. The method of research analysis was used multiple regression analysis.The result of this research showed that simultaneously, executive compensation, CFOs female representation, institutional ownership, and firm size has significant effect on tax aggressiveness. Partially, executive compensation has significant effect on tax aggressiveness. While the CFOs female representation, institutional ownership, and firm size has no significant effect on tax aggressiveness.The results of this research conclude that executive compensation is one of effective to minimize tax expense. On the other way, it indicates the larger amount of executive compensation will increase the level of tax aggressiveness. Keywords: Executive compensation, CFOs female representation, institutional ownership, firm size, tax aggressiveness.
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A. Mousa, Gehan, and Abdelmohsen Desoky. "The effect of dividend payments and firm’s attributes on earnings quality: empirical evidence from Egypt." Investment Management and Financial Innovations 16, no. 1 (January 10, 2019): 14–29. http://dx.doi.org/10.21511/imfi.16(1).2019.02.
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This empirical study aims mainly to investigate the effect of both dividend payments (DP) and five firm's attributes (firm size, firm leverage, firm performance, legal form and audit quality) on earnings quality (EQ) of the most active listed firms in Egypt. A sample of 552 firm-year observations during four years from 2014 to 2017 was used. Hierarchical Multiple Regression (HMR) was used to regress the six independent variables on firms’ EQ through the absence of firms’ earnings management (EM), which was estimated through discretionary accruals (DAC). Main results show that there is some divergence in EM practices over the four years and might suggest that EM by listed firms in Egypt exists especially in the first two years (2014 and 2015); how¬ever, relatively lower EM practices are found in the last two years (2016 and 2017). Correlation results show a number of significant relationships between the EM and three independent variables (firm leverage, legal form and audit quality). HMR results are in line with the results obtained via Pearson correlation.
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Canal Domínguez, Juan Francisco, and César Rodríguez Gutiérrez. "Does collective bargaining influence the way the size of the firm impacts wage dispersion? Spanish evidence." International Journal of Manpower 41, no. 4 (February 14, 2020): 357–74. http://dx.doi.org/10.1108/ijm-06-2018-0194.
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PurposeThis paper analyses the relationship between wage dispersion and firm size within a “two-tier” system of collective bargaining (firm bargaining and multi-employer bargaining levels). Collective bargaining has a decisive role in setting wages in Spain, and its regulation highly limits the possibility for smaller firms to negotiate their own collective agreement.Design/methodology/approachBased on the Spanish Structure of Earnings Survey 2006, 2010 and 2014, the authors use variance decomposition in order to deeply analyse the effect of bargaining level on wage dispersion and compare the value of each decile of the distribution of wages for the purposes of identifying the quantitative differences in wage compression.FindingsIn general, the outcomes positively linked firm size and firm bargaining to wage dispersion. However, if firm size is taken into account, the effect of firm bargaining is limited among small firm workers because this type of firm is not usually covered by firm bargaining. On the other hand, the time analysis allows observing a wage compression that follows different patterns depending on firm size, compressing the higher part of the distribution in case of small firms and the lower part in case of large firms. This should be explained by the fact that wage negotiation is dependent on firm size.Social implicationsFirm size has determined firm adjustment strategies to face the recent economic crisis and allows to evaluate the impact that changes in collective bargaining can have on wage distributionOriginality/valueThere is no research that has tried to analyse the relationship between wage dispersion and firm size in a context where collective bargaining is essential to understand the wage structure. Normally, firm size plays a decisive role in wage policy given that the capacity of a company to negotiate an agreement is closely linked to its size.
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Alabdullah, Tariq Tawfeeq Yousif. "Are Board Size And Ownership Structure Beneficial In Emerging Markets’ Firms? Evidence From Jordan." International Journal of Management & Information Systems (IJMIS) 20, no. 3 (June 30, 2016): 87–94. http://dx.doi.org/10.19030/ijmis.v20i3.9752.
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The present study aims to investigate the effect of board size and managerial ownership on firm performance in Jordan, based on agency. The current study examined cross sectional data to test all hypotheses through using statistical software, SPSS 20, to analyze data on a sample of 60 firms (service firms) in Jordan as one of emerging markets in Asia. Multiple regression analysis instruments were used to test the hypothesis regarding the effect of board size and managerial ownership on firm performance with the effect of firm size as a control variable. The data used in the current study is obtained from the annual reports issued by Amman Stock Exchange (ASE) for the year 2014. Accounting data is used in the current study for the purpose of measuring the performances represented by ROA and ROE. I find that measures of board size statistically affect ROA and ROE. Board size affects ROA and ROE positively while firm size has no effect on firm performance. Unfortunately, managerial ownership does not affect both ROA and ROE. The current study presents practical evidence to the policy makers, academic and all beneficiary parties in emerging markets, specifically Jordan.
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Tanui, Peninah Jepkogei, and Bramwel Murgor Serebemuom. "Corporate Diversification and Financial Performance of Listed Firms in Kenya: Does Firm Size Matter?" Journal of Advanced Research in Economics and Administrative Sciences 2, no. 2 (April 29, 2021): 65–77. http://dx.doi.org/10.47631/jareas.v2i2.235.
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Purpose: The study tested the hypothesis about the relationship between corporate diversification and financial performance. Moreover, moderating effect of firm size on the relationship between corporate diversification and financial performance of listed firms at Nairobi securities exchange (NSE) in Kenya was tested. Methodology/Approach/Design: The study was informed by market power and resource-based view (RBV) theories. To test the hypotheses, secondary panel data were collected from 35 listed firms at NSE from 2003 to 2017. Results: From panel regression analysis output, there was a significant positive (β = 2.225, p value = .000 < .05) relationship between corporate diversification and financial performance. Furthermore, firm size had a negative and significant (β = -.155, p value = .031<.05) moderating effect in the relationship between corporate diversification and financial performance. Practical Implications: The study thus concluded that firm size had a buffering effect in the link between corporate diversification and the financial performance of listed firms in Kenya. The findings of the study could be relevant to policymakers in drafting policies that affect diversification strategies of firms. For further research, the study recommended an increase of scope, other measurement approaches, analysis of corporate diversification from different perspectives other than product, and controlling for board characteristics. Originality/Value: The study while controlling the age of the firm tested the moderation effect of firm size in the relationship between corporate diversification and financial performance.
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Akinsokeji, R. A., E. O. Ogunleye, and O. O. Akindele. "Impact of Firm Performance on Corporate Governance Quality: The Case of Nigerian Manufacturing Firms." Sumerianz Journal of Economics and Finance, no. 311 (November 4, 2020): 189–93. http://dx.doi.org/10.47752/sjef.311.189.193.
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In this study, the reverse impact of firm corporate performance on board structure is empirically examined using a large cross section of 50 manufacturing firms in Nigeria. The study makes a divergence from previous studies by noting that such a reverse effect is possible and examining this effect of performance on board structure in Nigeria. The panel data estimation technique is employed on the pooled data for the firms over a ten-year period (2004-2013) and estimation is performed using four measures of firm performance and two measures of board structure. The results show that there is actually reverse impact of firm performance on board structure although the effect is quite weak. The only performance variable that exerts significant impact on board structure (board size and independence) is earnings per share and, to a lesser degree profit margin. Moreover, firm size is shown to be an essential factor in explaining the general behavior of firm performance and also the pattern of effect of such performance on the board structure. The analyses clearly showed that firm size is itself a strong positive factor in improving firm performance and also tends to improve the effect of high performance on board structure across the firms.
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Chakraborty, Pavel. "Environmental standards, trade and innovation: evidence from a natural experiment." Environment and Development Economics 22, no. 4 (April 19, 2017): 414–46. http://dx.doi.org/10.1017/s1355770x17000079.
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AbstractExploiting a natural experiment involving the imposition of a technical regulation by Germany on Indian leather and textile industries in 1994, a firm-level data set is used to study the trade, adaptation and discontinuity effects and how they vary by firm size. It is found that: (a) regulation significantly increases the export revenues of a firm through use of new technology and high-quality imported raw materials – indicating a possible signalling effect; (b) this gain is concentrated only on the upper half of the firm size distribution, i.e., in the 3rd and 4th quartiles; (c) use of imported raw materials significantly explains low exit probabilities of a firm; and (d) there is evidence of a sorting effect – regulation significantly affecting the operation of small firms.
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Ayalew, Misraku Molla, and Zhang Xianzhi. "The effect of financial constraints on innovation in developing countries." Asian Review of Accounting 28, no. 3 (October 22, 2019): 273–308. http://dx.doi.org/10.1108/ara-02-2019-0036.
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Purpose The purpose of this paper is to investigate the effect of financial constraints on innovation in developing countries. It also examines how the effect of financial constraints varies by sector and with main firm characteristics such as size and age. Design/methodology/approach The study utilizes matched firm-level data from two sources; the World Bank Enterprise Survey and the Innovation Follow-Up Survey. From 11 African countries, 4,720 firms have been included in the sample. A recursive bivariate probit model is used. Findings The result shows that financial constraints adversely affect a firm’s decision to engage in innovative activities and the likelihood to have product innovation and process innovation. The results point out that the extent of the adverse effect of financial constraints on innovation differs across the sectors, firm size and age groups. A firm’s innovation is also explained by firm size, R&D, cooperation/alliance, the human capital of the firm, staff training, public financial support and export. At last, the probability of encountering financial constraints is explained by firms’ ex ante financing structure, amount of collateral, accounting and auditing practices and group membership. Practical implications Managers should strengthen the internal and external financing capacity to reduce financing constraints and their adverse effect on innovation. Social implications A pending policy task for African leaders is to design and evaluate reforms that reduce the adverse effects of financial constraints on innovation. Originality/value This study contributes to the existing literature on financing of innovation by examining how and to what extent financial constraints affect innovation across various sectors, size and age groups.
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Zeng, Kaisheng, and Xiaohui Luo. "IMPACT OF OWNERSHIP TYPE AND FIRM SIZE ON ORGANIZATIONAL CULTURE AND ON THE ORGANIZATIONAL CULTURE-EFFECTIVENESS LINKAGE." Journal of Business Economics and Management 14, Supplement_1 (December 24, 2013): S96—S111. http://dx.doi.org/10.3846/16111699.2012.754373.
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This paper aims to extend the extant (primarily Western) organizational culture literature to emerging economies by explicitly incorporating two key contextual variables-ownership type and firm size into organizational culture model. Based on the theoretical model developed by Denison and his colleagues, we examined the impact of ownership type and firm size on organizational culture, as well as the moderating effect of the two contextual variables on the linkage between organizational culture and firm effectiveness. Using survey data from foreign-invested and state-owned firms in China, we find that ownership type and firm size have significant influence on organizational culture. We also find that different ownership type and firm size result in different organizational cultural effect on performance.